cargo claims

LDB

Veteran Expediter
Retired Expediter
The subject of cargo claims came up today. Among the discussion was the length of time in which a claim could be filed. At Fedex the customer has up to 9 months to file a claim. In many cases, if they are going to file a claim, they are going to wait until the last minute. They do that to increase the chance it will just be paid because nobody will remember anything. Depending on your carrier you could be liable for anywhere from $2500 to as much as $10,000 if a claim is made. Document any and all damage or suspicious findings on your paperwork. In addition to that, I plan to purchase a small digital camera to use just to photograph the truck loaded before leaving the shipper and again upon arrival at the consignee. The date and time stamp of the photo file can be matched to the shipment date if needed to rebut a claim.
 

greg334

Veteran Expediter
Leo,
Did they by chance tell you that any decision is final when making the determination and that they may not tell you about any claims made until after they made the determination? I heard this twice during my tenure there.

I don't remember is this is right but there is no appeal process in place for the contractor. If there is, then the people involved should be explaining the process to the class.

I know of one claim that was made 11 months after the delivery, because it was a highly valued customer, FedEx still processed the claim and more or less put the contractor in a bad position in forcing them to pay the claim.

I suppose that they also told you in orientation to read the back of the FedEx BOL carefully. They should go through that back with the people in orientation step by step seeing it is a legal binding document. Maybe also go through some securement procedures, talk more about the company policies with regards to security, talk about when you are not allowed to see your truck being loaded and so on but they don't.
 

LDB

Veteran Expediter
Retired Expediter
Actually they went into detail on the appeal process and the 2 levels available, one of which is outside the company. They also explained that if we're deemed at fault the decision can be appealed to the next higher level but if at any level we are deemed not at fault that is the end of the discussion. We also discussed in detail how to properly document times when we are not allowed to view the loading process so that no claims can be made. The only area I believe will be lacking is any discussion of cargo securement. So far, I have heard nothing about that from any carrier representative at any company, other than the standard "Be sure your cargo is secure." line.
 

TeamCaffee

Administrator
Staff member
Owner/Operator
I believe A Team also takes pictures of every load and files the info away. Good idea and a good habit to get into. I just so far have not been able to get into that habit. I realize that if there ever is a freight claim this process would pay for it immediately but have to wonder if A Team has ever had to provide information on how their freight was secured. I would also imagine since he has been doing this for so long he would have some good ideas on how to organize the pictures.
 

moose

Veteran Expediter
The subject of cargo claims .... Depending on your carrier you could be liable for anywhere from $2500 to as much as $10,000 if a claim is made .


Isen't that what Escrow account is for ?
and how the heck are they going to charge a contractor for 5,000$ or so ?
any one that will be facing such a claim ,will be leasing with someone Els B4 they can process the paperwork...
They can't touch You !
at any case there it the cargo insurance ...

In addition to that, I plan to purchase a small digital camera to use just to photograph the truck loaded before leaving the shipper and again upon arrival at the consignee.

a digital and film camera is a part of any accident-kit ,at any commercial vehicle .




Moose.
 

moose

Veteran Expediter
I believe A Team also takes pictures of every load and files the info away. Good idea and a good habit to get into. I just so far have not been able to get into that habit. I realize that if there ever is a freight claim this process would pay for it immediately but have to wonder if A Team has ever had to provide information on how their freight was secured. I would also imagine since he has been doing this for so long he would have some good ideas on how to organize the pictures.


Me 2 Me 2 !!!!
about 2 years ago ,i have perches a tiny little Digi cam .
i have attached the key for the trailer lock to it ,
and now every time i go to close the rear doors and lock the pad lock , I also take a pic. of the frieght being secured.
once i get payed for the load ,am deleting the Pic.



Moose.
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
I had a very strict policy that ALL mentioned percieved damage stayed on the truck. Being I wuz going to pay for it, I wuz going to own it. Be surprised how that policy eliminates damage claims. 99.999% of the other times, when life wuz good, i'd simply have em mark recieved in good condition 00/00/0000. You need to do that without fail!! Never had a damage claim at the time of delivery, or, after the fact. Jes good business!!

Exceptions of course, would be because of a crash. Luckily, that didn't happen sooo.. didn't have to go there.
 

ATeam

Senior Member
Retired Expediter
Diane and I are very proud of the fact that in over five years of hauling freight, we have never had a freight damage claim; not just a claim that was never paid, but no claim ever made. That is due in part to not skimping on equipment like straps, load bars, pads, rows of E track, etc.; and not failing to use them on every load.

There are a few shippers that do not permit cameras on their loading docks. Otherwise, we photograph every load at the pickup, before the door is closed and the seal (if any) is put on.

Organizing the pictures is haphazard. Every photo we shoot is stored in a folder entitled "2008-09-04 Road Pics Through This Date" (using today's date as an example). When the camera gets full or near full, we create a new folder, name it for that day's date and dump the photos into it. With this naming method, the computer automatically sorts multiple folders into date order.

These "raw" photos are archived using the default file names the camera puts on them. Anything we do with the photos after that is done to copies made from the "Through This Date" folders.

If a freight damage claim was ever made, the claim would state the date of the run. It would be easy to retrive the relevant photo by date reference.

If you wanted to be more precise, you could save the photo in a "Freight" folder, naming the file with the run number. Since freight damage claims are a non-event for us, we don't invest that time. Any time we would spend on a claim would be spent going through a folder or two to find the photo after a claim was made.

It is important to photograph not just the freight after it is secure in your truck, but other items too, from time to time. Poorly wrapped freight sitting on the dock, damaged freight (crushed corners, rips, punctures, etc.) and any tell-tale devices like tip meters, shock detectors, etc. should be photographed too. Also, if you have any concerns at all, you can further document them by sending info in on the Qualcomm and by stating your concerns on your departure call which you make with every load and is recorded.

From what I have heard from other drivers, FedEx Custom Critical does not easily roll over and pay freight damage claims. If you can provide information by photo, and especially by good notations on the bill of lading that the shipper and/or consignee signed, the claim will be resisted.

Let me go on to share a story about one of the smartest young drivers I have ever met on the road. He followed us into a rest area to ask directions and also to show us his freight. Clearly, he was worried. Though he didn't need to be.

He had gone into a moving company warehouse to pick up the freight. They asked him to sign the bill of lading right away. He (wisely) refused, saying he needed to see the freight first. They then showed him to what was essentially a pile of rubble that had previously been one of those giant chandeliers that hang in hotel ball rooms.

He called dispatch, reported it, and asked if he should take the load. Dispatch said yes but also told him to document the condition on the bill of lading and have the shipper sign it. Diapatch also made notes off his telephone call, and, of course, the call was recorded. He took the load and got paid for it. As far as I know, no claim was made or paid.

This was a case where the moving company had destroyed someone's freight and was trying to pass it off on someone else. That young driver did us all proud that day. It is unlikely the moving company will call FedEx Custom Critical again in an attempt to bury their misdeed.

What if the shipper refuses to admit you to the dock before you sign the paperwork? That has happened to us a couple times. The solution is the same.

Note it on the paperwork. Notify dispatch. Write something like "Driver prohibited from seeing and inspecting freight before dock access was granted. Signiture on BOL required beforehand. Dispatch notified." and have the shipper sign, making sure to get the name of the person signing and making sure it can be read.

I believe our carrier will go to bat for its contractors and drivers if a freight damage claim is made. But the more information you can give about each load, the better off you will be if a claim is ever made.

It is EASY to take a quick photo and jot down a few notes. Get in the habit of inspecting each load each time. Resist the urge to get loaded and get going. Take a breath. Take an extra few minutes. Walk around the freight. Read the labels. Note the condition. Put your hands on it. Jiggle it. Smell it. Look it over; top to bottom and all around.
 
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TeamCaffee

Administrator
Staff member
Owner/Operator
Moose the deal about the freight claim is even though you are paid for the load the customer nine months down the road can say the freight was damaged so you still need those pictures.

ATeam you reminding me of story we heard on a HazMat load. You mention jiggle the freight and look for damaged packaging. Do not though on a HazMat load smell the freight and whatever you do don't taste anything that is dripping!

I have also seen and heard of FedEx not backing down when there is a damage claim when you have notes on the load and also noted in the phone call. Communication is the key. The pictures are just another tool to CYA. We find it is a lot better to be pro active the reactive.
 

pjjjjj

Veteran Expediter
I had a very strict policy that ALL mentioned percieved damage stayed on the truck. Being I wuz going to pay for it, I wuz going to own it. Be surprised how that policy eliminates damage claims. 99.999% of the other times, when life wuz good, i'd simply have em mark recieved in good condition 00/00/0000. You need to do that without fail!! Never had a damage claim at the time of delivery, or, after the fact. Jes good business!!

Exceptions of course, would be because of a crash. Luckily, that didn't happen sooo.. didn't have to go there.

Great advice!
Would there ever be a time when a damage claim would cost more than the actual cost of the freight itself?
 

pjjjjj

Veteran Expediter
It is important to photograph not just the freight after it is secure in your truck, but other items too, from time to time. Poorly wrapped freight sitting on the dock, damaged freight (crushed corners, rips, punctures, etc.) and any tell-tale devices like tip meters, shock detectors, etc. should be photographed too. Also, if you have any concerns at all, you can further document them by sending info in on the Qualcomm and by stating your concerns on your departure call which you make with every load and is recorded.

What if the shipper refuses to admit you to the dock before you sign the paperwork? That has happened to us a couple times. The solution is the same.

Note it on the paperwork. Notify dispatch. Write something like "Driver prohibited from seeing and inspecting freight before dock access was granted. Signiture on BOL required beforehand. Dispatch notified." and have the shipper sign, making sure to get the name of the person signing and making sure it can be read.

It is EASY to take a quick photo and jot down a few notes. Get in the habit of inspecting each load each time. Resist the urge to get loaded and get going. Take a breath. Take an extra few minutes. Walk around the freight. Read the labels. Note the condition. Put your hands on it. Jiggle it. Smell it. Look it over; top to bottom and all around.

Great tips, thanks for sharing! :)
 

nightcreacher

Veteran Expediter
Not to brag but in the length of time ive been with Roberts Ex till now at Fecc,ive never been charged with a freight claim.I did have someone call and ask questions about damage a couple of times,one of which I had pictures to verify that it wasnt my fault,and the other just happened couple months ago,and when load was delivered there was no damage,it all of a sudden showed up couple weeks later.No pictures as werent permitted on the dock,and and was shipper load and count.Just remember,cargo claims come from not taking care of business,spend those extra few minuets to make sure the load is secure,and if you see any damage while loading,call it in.
 

iceroadtrucker

Veteran Expediter
Driver
That is a True Steve:

One note on the above. Did you know that Digital Cameras pics are not allowed to be used in accidents. Unless its done by Law Enforcement.

The reason is simple the Pics can be manipulated using programs.

Even though its a outstanding Idea to take a pic of the freight before and after.

If you use a Digital Camera you may want to investigate fruther in the leagality of using the Pics from that cammera in some states.

This is not to offend any one here. however it does need to be addressed.

Many Courts will not allow evidence if a digital cammera is used unless the pics were taken by the Investigator or police / highway Bulls them selves. again this is due to the ability of them to be manipulated. Somthing for the A team to think about. Sometimes all the High tec stuff gets flushed down the toilet. Note even if you left them on the cammera if that cammera has a mem card then nope as they can be taken off the cammera then put back on.
The laws of this country ever changing.
The only real way thats 100% is a regular Cammera. As was suggested like the ones included in an accident kit.

This wasnt to offend any one here just passing on some knowledge. Somtimes trying so hard to be 1 makes ya number 2.
:)
 
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greg334

Veteran Expediter
Well I didn't want to add that but IRT is right. Unless you can prove that the pics were not manipulated in anyway, they are sort of useless.

The other thing is not all shippers will sign off on the "won't let driver on dock stuff. GM for one refused to do this and so does a few companies, I then put refused to sign. And just thinking about it, when you pick up at a military base, Pfizer and other places, you are not allowed to photograph anything, or are some of you exceptions.

But I am glad things have changed over at the Fed, even though I am still wondering about the BOL.
 

cheri1122

Veteran Expediter
Driver
Excellent thread, Leo.
I've never had a damage claim, and consequently never thought I need to take photos - I think it's time to start. IRT's point about digital photos is well taken (Photoshop can do some amazing stuff!) so maybe I'll just get a couple disposables. I can label them by dates, and no need to develop them if no claim is made, eh?
 

LDB

Veteran Expediter
Retired Expediter
I'm aware of the potential for digital photos to be contested. My contention will be that the photos illustrate what is described on the BOL so they are not a proof on their own they are a confirmation of what is in writing on the BOL. So far I'm favorably impressed with their policies as presented. The potential maximum liability of the contractor is significantly less than I'm used to. It isn't related to this thread but the only area I find lacking so far is their logbook which doesn't have the 7 day recap on each page but instead uses the woefully inferior monthly recap inside the front cover.
 

cheri1122

Veteran Expediter
Driver
Leo: maybe you could print your own log sheets, as I do? I find it easier to do than writing the carrier name, address, etc, on every page. If you print your own, you could add the 7 day recap.
 

x06col

Veteran Expediter
Charter Member
Retired Expediter
US Army
Werent no exception wit me greg. I made da rules what went on the truck, in what condition, an how it came off.

It's that "employee" attitude that still stimies things to happen. Or, not to happen.
 

nightcreacher

Veteran Expediter
Just make sure the bills are marked shipper load and count,even if they refuse to sign,takes most responsibility from you.If your picking up a load and your not permitted on the dock,how do you know what they put in the truck,and second,if its marked, s l and c,make sure you get a seal,or the sl&c really doesnt apply.Back in the 70's when I drove a company truck,we had a customer,HJ HEINZ in Muscatine Ia,that always insisted on loading the trucks their way.Bills were always signed SL&C,and everyload when ariving at the Harrison NJ plant had damage.No one was ever charged for the damage as of the SL&C.
 
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